China Wants to Own Small Stake in Web Firms

Chinese proposal calls for state to take 1% stakes in firms

The Chinese government’s control over the Internet could get even tighter, with regulators floating a proposal for the state to take 1% stakes in major Chinese Internet companies, according to people familiar with the matter.

Under the proposal, for which China’s Internet and media regulators have been soliciting companies’ opinions, the government also would take a board seat at companies where it buys such “special management shares,” the people say, giving it more direct influence over company policies on content and censorship.